Nevada School District to Settle Insurance Broker Suit for $1.65M

The Clark County School District in Nevada says it will pay a former insurance broker $1.65 million to settle a lawsuit that claimed the public agency ended the broker’s contract prematurely.

The Las Vegas Sun reported at the time that Business Benefits Inc. sued the district in May 2014 after the company’s contract was terminated with less than six-months notice after the firm raised its commission level.

The company acted as a go-between brokering insurance between the district and health insurance companies with the firm getting a commission from the insurer.

The district says the settlement will be paid from its risk management fund. The district’s board is expected to vote on the settlement July 16.

Business Benefits’ president Tim DeRosa called the settlement a compromise.